Consensus : Proof-of-Reward

IgniteChain's consensus for validating transactions

Every blockchain network require some kind of validation on transactions, it is required to employ some logical methods to make sure each transaction is valid. This logical method that every blockchain network uses are known as Consensus. It is needed for every blockchain to use validating processes in order to keep blockchain network safe and secure.

IgniteChain network is using reward-based validation (Proof-of-Reward) with the security of Proof-of-Stake (PoS) consensus in process of validating & broadcasting transactions on network.

In Proof-of-Reward (PoR) consensus, every node is rewarded for the transaction they sign right after the transaction is processed and broadcasted on the blockchain network. The validator of transaction is incentivized from the gas used to execute transaction. This consensus system is also called Reward base validation. It is the latest consensus introduced by Ignite Chain team.

Beginning with core algorithm YAN, IgniteChain is working on purpose-built procedures & practices making it distinctive to preciously built blockchain networks.

What is YAN : Yantra (YAN) is core of consensus algorithm for IgniteChain. It executes every methods and logical statements in cryptographical manner to run the consensus.

Proof-of-Reward (PoR) Consensus

Designed & Developed by IgniteChain team;

We have put more than 20 years of combined research together to come up with such a solution that involves whole community and do not just incentivize node operators. With the use of Reward Protocol, this consensus creates stamp of every transaction by comprising transaction (TNX), sender (U), validator (V), contract developer (D), foundation (F) and system (S).

TNX, U, V, D, F, S, G = gas; Validator Reward (V) = G / 2; [ 100 / 2 = 50 ]

Sender Reward (U)

If TNX Gwei < 5 { U = G / 4 } [ 100 / 4 = 25 ] If TNX Gwei < 9 { U = G / 3.45 } [ 100 / 3.45 = 29 ] If TNX Gwei > 9 { U = G / 3.03 } [ 100 / 3.03 = 33 ]

Developer Reward (D) = G / 14.29; [ 100 / 14.29 = 7 ]

Foundation (F) = (G / 3.03) - U; [ (100 / 3.03) - U = 8, 4, 0 ]

System (S) = G / 10; [ 100 / 10 = 10 ]

Whenever a transaction is requested from user, the reward protocol executes the reward distributing smart contract. All the comprising addresses are put in contract queue to broadcast the transaction on IgniteChain network. All rewards are incentivized with IgniteChain network’s native IGT coin.

Validator reward is split in two portions: 1. 50% goes to node operator and other 50% is shared among the delegator to that particular masternode. The Masternode with the highest delegator is prioritized and gets high chance to validate the transaction. From the total amount of Masternode, maximum of 251 gets to run the network and validating procedure. All node operators are required to stake 50,000 IGT tokens to be able to become Masternode and participate in transactions validating process.

Reward Protocol

Ignite Reward Protocol is the structure of PoR consensus. It is called before broadcasting transactions on IgniteChain network. Reward protocol calculate every transaction associated gas fee and distribute it to comprising recipients’ addresses to create a stamp of transaction execution.

PoS(V) in IgniteChain

As Proof-of-stake is very popular consensus mechanism, it provides highly secure operational structure to the blockchain network. We are using the sub-consensus of PoS, called Proof-of-Stake Voting combined with our own Proof-of-Reward (PoR) consensus. The reason behind choosing PoSV is that it ensures the true structure of decentralization. Every IGT token holder gets a chance to participate in process of securing the IgniteChain network by staking & voting validators. Voting in PoSV is continuous process and each Masternode on top is always at risk of being replaced by another masternode that gets more votes. Masternode with higher votes considered more as it’s chances of validating transaction and Masternode capacity increases rapidly. As the number of masternodes & delegators grow, increasing Masternode capacity becomes significantly important for every masternodes.